Overview of Special Economic Zones and Integrated Industrial Zones in Indonesia

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By:

Team of Hukumindo

Previously, the www.hukumindo.com platform has talk about "Iwa Kusumasumantri, Mantan Menteri dan Rektor yang Pernah Mendirikan Kantor Hukum", "Sharia Investment: Definition, Characteristics, Types, and Benefits", "Understanding 5 Steps Foreign Direct Investment In Indonesia" you may read also "Is the Property Sector in Indonesia Open to Foreign Investment?" and on this occasion we will discuss about 'Overview of Special Economic Zones and Integrated Industrial Zones in Indonesia'.

What is Investment?

Investment-or in other terms it is also known as investment-has a broad meaning, which is an activity to obtain profit in the future. According to Article 1 paragraph (1) of Law No. 25 of 2007 concerning Investment ("UU 25/2007") defines investment as all forms of investment activities, both by domestic investors and foreign investors to do business in the territory of Indonesia. Republic of Indonesia. From Law 25/2007 it is known that investment or investment is divided into two types, namely Domestic Investment (PMDN) and Foreign Investment (PMA). Domestic Investment is an investment activity in Indonesia by fully using domestic capital and carried out by domestic investors. Meanwhile, foreign investment is an activity to invest in Indonesia carried out by foreign investors, either using foreign capital wholly or jointly with domestic capital.[1]

Foreign investment in Indonesia is generally divided into several sectors. Broadly speaking, foreign investment in Indonesia focuses a lot on the development, tourism, mining, transportation and product sectors. The sector is determined according to the potential of each region in Indonesia. For example, islands such as Bali and Lombok can attract foreign investors in the tourism sector because their infrastructure is sufficient. Foreign investors can invest by building hotels and tourist attractions.[2]

There is also investment in the refined palm oil product sector. On islands such as Sumatra and Kalimantan, oil palm can thrive. Foreign investors can build palm oil processing factories to advance the local economy. Apart from that, the areas that attract the attention of many foreign investors are mining and natural resources such as minerals, liquefied natural gas, coal and petroleum. The large amount of potential makes foreign investors compete to invest by establishing companies and factories in Indonesia. Even so, foreign investment in Indonesia must be carried out in an orderly manner and in accordance with investment laws. Don't let foreign investment harm the land and the Indonesian nation in the future.[3]

One of the main reasons why Indonesia needs foreign investors is people's consumption power and the export trend which is still low. Industrial area infrastructure and economic support sectors can of course consume a large budget. Meanwhile, Indonesia does not yet have enough savings to fund the development from its own pocket. That way, development cannot rely on domestic investment alone.[4]

Foreign investors who invest by building companies or factories in Indonesia are expected to be able to absorb the local workforce maximally. By employing local human resources, foreign companies operating in Indonesia can educate workers about product quality, production technology, and a good work ethic. So, investment is not only made for economic interests, but also builds intellectual investment for the workforce. Foreign investment will automatically increase the number of exports, especially in the product sector. In the tourism sector, the rapid development of tourist destinations will attract foreign tourists to come so that it will increase the country's foreign exchange earnings.[5]

Indonesia's Efforts to Attract Foreign Investors

In business, a strategic and profitable company location is a top priority. Adequate infrastructure is also a supporting factor. With a good location and infrastructure, the company's business activities become more effective. To attract foreign investors, the Indonesian government has started preparing locations with appropriate infrastructure. In addition, the government is also willing to provide several fiscal facilities and ease of licensing related to company activities.[6]

The placement locations for foreign investors are divided into two types, namely Special Economic Zones and Integrated Industrial Zones. With different functions and purposes, these two types of locations are spread all over Indonesia.

Special Economic Zones (KEK)

Currently, Indonesia has prepared 9 Special Economic Zones (KEK) and around 13 Integrated Industrial Zones. This figure is expected to continue to increase along with the hectic investment in Indonesia. The following are SEZs that are ready to operate in Indonesia:[7]

1. KEK Tanjung Kelayang;
2. KEK Tanjung Lesung;
3. KEK Maloy Batuta Trans Kalimantan;
4. KEK Sei Mangkei;
5. KEK Mandalika;
6. KEK Morotai;
7. KEK Bitung;
8. KEK Tanjung Api-Api;
9. KEK Palu.

The definition of SEZ or KEK (Kawasan Ekonomi Khusus) itself is an area that has special advantages in terms of geostrategy and geoeconomics. This advantage is enabled to support industrial, export and trade activities in the region. Careful SEZ preparations are also aimed at attracting domestic and foreign investors.[8]

With the influx of foreign investment and the development of business turnover, SEZ is also expected to be able to absorb the workforce around the area. So, all potential resources in the area can be put to good use and in accordance with state regulations. Each SEZ has a focus on a different sector. For example, Tanjung Lesung SEZ which is better prepared as a special tourism area. Foreign investors can develop businesses related to tourism such as hotels, inns or tourist attractions.[9]

Another example is SEZ Sei Mangkei in North Sumatra which focuses on plantations. With fertile land, Sei Mangkei could provide a large supply of palm oil and rubber. Foreign investors can set up a palm oil processing factory in this area. Even though currently the government is only preparing 9 SEZs in Indonesia, other regions can submit proposals to become part of the Special Economic Zones. Submissions must be made by local governments, provincial governments, or private business entities. One of the advantages that can be obtained by companies investing in SEZs is the ease of licensing, tax convenience, and guaranteed availability of workers. Often times, bureaucratic licensing and taxation prevent investors from investing in Indonesia.[10]

Integrated Industrial Area (KIT)

Apart from Special Economic Zones, Indonesia has also prepared dozens of Integrated Industrial Zones which also aim to attract foreign investors. Some of these areas are already operating in various regions in Indonesia. Currently, the island that has the most integrated industrial areas is Java Island. In contrast to SEZs, industrial estates place more emphasis on the convenience of doing business through well-organized facilities and infrastructure.[11]

Oftentimes, Integrated Industrial Estates not only have large areas of land for factories and manufacturing, but also have commercial areas such as shopping centers and housing. The following are 13 integrated industrial estates that are already operating:[12]

1. Kendal Industrial Area. With a location of 700 hectares, this area in Central Java is an investment area for automotive parts and furniture manufacturing companies.
2. New Semarang Hill Industrial Area. Located in Central Java, this industrial location still has 40 hectares of land that can be utilized by foreign investors. In this area, the government wants to focus on industrial activities that are free from waste. So, only companies that can meet environmental friendly requirements can open a business in this area.
3. Wijayakusuma Industrial Area. Located in Central Java, this 100 hectare plot of land has become a home for a garment company, housing and warehousing center.
4. Java Integrated Industrial and Port Estate (JIIPE). With an area of ​​1,761 hectares, JIIPE already operates heavy equipment, automotive and fertilizer manufacturing companies.
5. Bantaeng Industrial Area. One of the industrial areas in South Sulawesi has an area of ​​3,000 hectares which is ready to be used for a mineral processing company.
6. Cikande Modern Industrial Area. With an area of ​​1,800 hectares, this area in West Java is home to electronics and electrical component factories.
7. Wilmar Integrated Industrial Estate. This area has ready-to-use land of 800 hectares. Companies that are already operating in this area are food processing factories.
8. Cilegon Industrial Area. Located in the western part of Java Island, this industrial area has a land area of ​​570 hectares which is ready for use. Several companies already operating in this area are involved in the steel, mineral and chemical sectors.
9. Bekasi Fajar Industrial Area. With a land area of ​​300 hectares, Bekasi Fajar provides land and infrastructure for companies wishing to invest and build factories in the area.
10. Delta Silicon Industrial Area. Located in West Java, this 158 hectare area is now home to manufacturers of automotive parts, vehicles, electronics and food.
11. Karawang International Industrial Area. Karawang is already well-known as an integrated industrial area in West Java. With 293 hectares of ready-to-use land, there are now companies manufacturing food, vehicles, automotive parts and sanitation products in Karawang.
12. Suryacipta City of Industry. In this area in West Java, you can find companies engaged in the production of tires, car batteries and plastics.
13. GT Tech Park Industrial Area. Still in West Java, in this industrial area there are companies producing tires and automotive parts.

In addition to location and infrastructure, the Integrated Industrial Estate also has almost the same administrative facilities as KEK. The government provides licensing, taxation and employment facilities for companies operating in the area. Here are some of the conveniences that investors can enjoy:[13]

1. Ease of licensing. To build a factory, of course, investors need to have an investment permit, principle permit, safety and environmentally friendly permit, building permit, due diligence, and complete company documents.
2. With the Ease of Direct Construction Investment Services (KLIK), investors only need to take care of investment permits before starting construction. It must be admitted that issuing environmental permits such as the AMDAL and permits such as the Building Construction Permit (IMB) takes a long time.
3. If in the past development could be hampered due to permit issues, now investors do not have to wait long for these permits to be issued to start construction. The condition is that these permits are still being processed in parallel and must be completed before construction is completed. Without these permit documents, the company's commercial activities cannot begin even though the building construction is ready.
4. Tax convenience. Some machines, materials and raw materials for production may not be available in Indonesia. If the machine, materials and raw materials in question can only be obtained abroad, BKPM provides tax convenience by waiving fees and import taxes on these goods.
5. Of course, this will ease the process of entering goods and make it easier for the company to continue operating. Even so, to get this tax facility, companies must meet several conditions and obtain a recommendation from the Directorate General of Taxation.
6. Ease of employment. The government guarantees that companies can get ready-to-work human resources from around the company's location. This is of course a good solution because companies can create jobs and Indonesian workers can be put to good use.

Although each region has its own advantages, the types of businesses in the Integrated Industrial Estate are not limited. For example, the Karawang international industrial area is home to a wide variety of manufacturers ranging from food, tires, automotive parts, vehicles, to sanitation products. Both the SEZ and the Integrated Industrial Zone must be developed so that they can provide comfort for companies and investors operating in the area. Infrastructure such as road access, transportation, housing, and commercial areas need to be developed to create an integrated industrial area. Some areas also have facilities such as seaports and airports to facilitate company activities and mobility. With an adequate transportation system, export activities, goods delivery, and trade can run smoothly.[14] And if you have any legal issue with this topic, contact us then, feel free in 24 hour, we will be happy to assist you. 

*) For further information please contact:

Mahmud Kusuma Advocate

Law Office

Jakarta - Indonesia.

E-mail: mahmudkusuma22@gmail.com

________________

References:

1. "Panduan Investasi Asing di Indonesia", smartlegal.id, Diakses pada tanggal 14 Januari 2023, Link: https://smartlegal.id/badan-usaha/2019/03/05/investasi-asing-indonesia/

2. "Perkembangan Serta Manfaat Investasi Asing di Indonesia", bplawyers.co.id., Diakses pada tanggal 14 Januari 2023, Link: https://bplawyers.co.id/2017/09/08/perkembangan-manfaat-investasi-asing-di-indonesia/

3. Ibid.

4. Ibid.

5. Ibid.

6. Ibid.

7. Ibid.

8. Ibid.

9. Ibid.

10. Ibid.

11. Ibid.

12. Ibid.

13. Ibid.

14. Ibid.

Iwa Kusumasumantri, Mantan Menteri dan Rektor yang Pernah Mendirikan Kantor Hukum

(ciamis.info)

Oleh:

Tim Hukumindo

Pada kesempatan yang lalu platform www.hukumindo.com telah membahas mengenai "6 Property Investment Tips in Bali for Foreigners", "Notonagoro, Akademisi Hukum Dan Pelopor Filsafat Pancasila", "Soepomo, Penentang Paham Hak Individualistik Dan Turunannya", "Mengenal Jimly Asshiddiqie, Ketua Mahkamah Konstitusi RI Pertama" dan "Mengenal Taufiequrachman Ruki, Ketua KPK Pertama", pada kesempatan ini akan dibahas mengenai 'Iwa Kusumasumantri, Mantan Menteri dan Rektor yang Pernah Mendirikan Kantor Hukum'.

Biografi Singkat

Iwa Kusumasumantri, ia adalah seorang tokoh politisi nasional, pengacara serta pejuang hak-hak buruh. Ia pernah menduduki jabatan sebagai menteri di era kepemimpinan Soekarno.Iwa lahir di Kabupaten Ciamis, pada tanggal 31 Mei 1899. setelah menyelesaikan pendidikan dasar di sekolah yang dikelola oleh pemerintahan colonial Belanda, kemudian melanjutkan pendidikan di Opleidingsschool Voor inlandse Ambtenaren (OSVIA) atau sekolah pegawai pemerintah pribumi. Sebelumnya ia menolak untuk masuk sekolah tersebut atas permintaan ayahnya.[1]

Setelah menjalani sekolah di OSVIA, Ia tidak bertahan lama. Kemudian ia pindah ke Jakarta untuk mengenyam pendidikan hukum. Di Jakarta, Iwa bergabung dengan sebuah organisasi pemuda jawa atau jong java. setelah menyelesaikan pendidikan di Jakarta selama 5 tahun, akhirnya ia pindah ke Belanda untuk melanjutkan pendidikannya di Universitas Leiden. Di Belanda ia bergabung dengan serikat Indonesia (Indonesische Vereeniging), serikat Indonesia merupakan kelompok nasionalis para intelektual Indonesia.[2]

Pada tahun 1957 Iwa menjadi Rektor Pertama Universitas Padjajaran Bandung. Kemudian ia menjadi anggota Dewan Pertimbangan Agung merangkap sebagai Menteri Perguruan Tinggi dan Ilmu Pengetahuan. Dan pada tanggal 27 November 1971 Ia meninggal dunia karena penyakit jantung setelah dirawat di Rumah Sakit Cipto Mangunkusumo dan Jenazahnya dimakamkan di Pemakaman Karet. Pada masa pemerintahan Megawati, Ia diakui sebagai Pahlawan Nasional.[3]

Pernah Mendirikan Kantor Hukum

Setibanya Iwa Kusumasumantri di Indonesia, ia membuka kantor pengacara di Bandung, Jakarta, Medan. Ia juga menerbitkan surat kabar bernama Matahari Indonesia. Namun, pada Juli 1929, akibat tulisan tulisannya yang tajam di surat kabar yang diterbitkannya itu, ia harus mendekam di penjara Medan selama satu tahun. Kemudian dipindahkan ke Jakarta untuk diasingkan ke Bandaneira. Akhir Februari 1941, Iwa dipindahkan dari Bandaneira menuju Makassar.[4] Tidak hanya di satu kota saja, beliau pernah mendirikan kantor hukum di tiga kota, yaitu Bandung, Jakarta dan Medan.

Setelah Indonesia merdeka pada tahun 1945, Iwa Kusumasumantri diangkat menjadi Menteri Sosial di bawah pimpinan Presiden Soekarno. Namun, masa jabatan tidak bertahan lama, karena adanya perubahan sistem pemerintahan menjadi sistem parlementer. Ia ditangkap pada tahun 1946, karena terlibat peristiwa dalam Peristiwa 3 Juli 1946 bersama Mohammad Yamin, Subardjo, dan Tan Malaka. Setelah menjalani hukumannya, ia sekali lagi menjabat sebagai menteri, tapi kali ini ia dipercaya sebagai Menteri Pertahanan. Setelah tidak menyandang jabatan sebagai menteri, tahun 1957 Iwa menjadi rektor Universitas Padjadjaran Bandung, lalu pada tahun 1961 menjadi anggota Dewan Pertimbangan Agung merangkap juga menjadi Menteri Perguruan Tinggi dan Ilmu Pengetahuan.[5] 

____________________

References:

1. "Mengenal Sosok Iwa Kusuma Sumantri", ketik.unpad.ac.id., Diakses pada tanggal 22 Desember 2022, Link: https://ketik.unpad.ac.id/posts/142/mengenal-sosok-iwa-kusuma-sumantri

2. Ibid.

3. Ibid.

4. "Profil Iwa Kusuma Sumantri", m.merdeka.com., Diakses pada tanggal 22 Desember 2022, Link: https://m.merdeka.com/iwa-kusuma-sumantri/profil

5. Ibid.

6 Property Investment Tips in Bali for Foreigners

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By:

Team of Hukumindo

Previously, the www.hukumindo.com platform has talk about "John Howard, Sarjana Hukum Yang Juga Mantan Perdana Menteri Australia", "Sharia Investment: Definition, Characteristics, Types, and Benefits", "Understanding 5 Steps Foreign Direct Investment In Indonesia" you may read also "Is the Property Sector in Indonesia Open to Foreign Investment?" and on this occasion we will discuss about '6 Property Investment Tips in Bali for Foreigners'.

Investing in real estate is a profitable business and you can get the most out of it by doing it the right way. Property investment in Bali is still a profitable venture despite the pandemic if you realize the high demand is being held back by the border closures. Quite the contrary, the pandemic presents a golden opportunity to buy property in Bali because you will be ready to meet that demand when international flights are no longer restricted. Whether you're a first-time buyer or expanding your portfolio, these tips can help maximize the return on your investment:[1]

1. Long term property rental. Purchasing freehold property using a nominee agreement provides no legal protection and is not a recommended practice. The duration of the lease for long term rental properties in Bali is usually between 25 to 35 years and is sufficient for long term capital growth especially if you invest in a good location. While setting up a foreign investment company (referred to as PT. PMA in Indonesia) is the safest method for foreign property ownership, buying a villa or freehold land with a PT. PMA is recommended for medium to large scale investments as there is a minimum amount of capital investment that needs to be met.
2. Invest in a growing area. Buy property in an up-and-coming area like Canggu while there are still opportunities, especially in the Berawa neighborhood where all the hustle and bustle is going on right now and property values ​​are on the rise. Developed areas such as Seminyak and Kuta have little room for new development while property prices there are much higher. The growth in rental demand in developing areas is also stronger than in developed areas as it has been in the last 3 years, very profitable if you are planning to invest in short term property rentals. Don't ignore undeveloped areas around developing areas, instead invest in these areas early on. Rent, for example, is not yet as developed as Canggu but is a promising location for both long term investment and short term rentals.
3. Get to know the rental property market. This is especially important if you are looking to re-lease your property either on a yearly or daily basis, as market conditions vary by region from time to time. Knowing the latest trends, such as any price changes and average rental demand will allow you to recognize the current state and potential of the market, will allow you to invest in the right place and property. Even if you are just looking for a home to live in, it is very useful to understand the rental potential of the property as you might consider renting it out for cash flow when you vacation overseas or return to your home country. The income of a villa is determined by several factors such as the number of bedrooms, design and location. Income from different properties with similar specifications can vary easily, and you can make double your profit if you meet the right demand in the right area. The supply and demand for a given number of bedrooms also varies depending on the market for the region. For daily rentals, good management is essential as this will affect guest satisfaction and reviews. For long term rentals, proximity to international schools or co-working spaces will make your property more attractive to tenants with specific needs. This is one of the main reasons it is important to work with licensed real estate agents and local property management firms, and we will talk more about this later.
4. Consider buying an off-plan property. Off-plan properties generally sell for less than market value, and you don't have to worry about maintenance costs during low occupancy at times like this. Buying a property off-plan can be a cheaper option than fix-and-flip because renovation costs can easily increase if the property has hidden costs, and is something you should be aware of when browsing for cheap properties. Also, you can find off-plan properties offered with guaranteed ROI. It is wise to invest in large-scale off-plan projects as early as possible, because you will have the best units available before they reach their highest competitive prices. Most off-plan properties increase their prices as construction progresses, and buying an off-plan villa before groundbreaking will be 30% cheaper than when it is already built.
5. Appoint a reliable property manager. Look for a well-networked property manager who can help with the upkeep of your property, so you don't have a hard time finding housekeepers, gardeners, plumbers, etc. Hiring a manager is essential for rental properties even if you don't live far from your investments because the workload can be fully divided or delegated to keep you from the hassle, and is sure to be a lifesaver if you are renting out multiple properties at once. Guest satisfaction plays an important role in attracting customers, because online reviews greatly influence a potential customer's decision to rent your property or not. Thus, working with a good management company not only helps in maintaining your property but can also generate high numbers and reviews.
6. Consult a local real estate agent. Whether you want to buy property through an agent or need information, always seek help from a licensed agent. Local agents are the best source as they can provide accurate and up-to-date information including important information related to the property market, such as the prospect of renting an area and even the estimated rent of a particular property. In addition, the agent may have a property that perfectly suits your budget and preferences, saving you the hassle of navigating Bali's congested streets. Do not work with unlicensed freelance agents as they do not have the legal authority to handle real estate transactions. Even worse, you can be tricked into fraud, such as paying the property or the agent's commission more expensive than it should be.

And if you have any legal issue with this topic and interested in investing your fund in the property sector in Indonesia, contact us then, feel free in 24 hour, we will be happy to assist you. 

*) For further information please contact:

Mahmud Kusuma Advocate

Law Office

Jakarta - Indonesia.

E-mail: mahmudkusuma22@gmail.com

________________

Reference:

1. "6 TIPS INVESTASI PROPERTI DI BALI UNTUK WNA", //bali-home-immo.com., Diakses pada tanggal 12 Januari 2023, Link: https://bali-home-immo.com/id/blog/6-tips-investasi-properti-di-bali-untuk-wna

John Howard, Sarjana Hukum Yang Juga Mantan Perdana Menteri Australia

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Oleh:

Tim Hukumindo

Pada kesempatan yang lalu platform www.hukumindo.com telah membahas mengenai "How to Start a Business in Indonesia", "Notonagoro, Akademisi Hukum Dan Pelopor Filsafat Pancasila" dan "Mengenal Jimly Asshiddiqie, Ketua Mahkamah Konstitusi RI Pertama", "Mengenal Taufiequrachman Ruki, Ketua KPK Pertama", "Mengenal Tony Blair, Mantan Perdana Menteri Inggris Yang Juga Pengacara" pada kesempatan ini akan dibahas mengenai 'John Howard, Sarjana Hukum Yang Juga Mantan Perdana Menteri Australia'.

Biografi Singkat

John Winston Howard (lahir 26 Juli 1939) adalah Perdana Menteri Australia sejak 11 Maret 1996 hingga 3 Desember 2007. Howard dilahirkan di Sydney dan mengikuti sekolah di Earlwood Primary and Canterbury Boys’ High. Ia meneruskan ke Universitas Sydney dan lulus Sarjana Hukum pada 1961. Ia dibesarkan di daerah Earlwood, suatu daerah kelas menengah yang penduduknya hampir semua merupakan keturunan Anglo-Saxon. Ayahnya mempunyai bengkel mobil dan mendapatkan penghasilan memadai. Ia dibesarkan tanpa banyak kontak dengan masyarakat imigran Australia maupun yang miskin.[1]

John Howard adalah perdana menteri terlama kedua Australia setelah Sir Robert Menzies. Howard juga adalah pemimpin Partai Liberal sejak tahun 1995 hingga 2007. Ia kalah dalam pemilu 2007 yang diadakan pada 24 November sehingga harus melepaskan jabatannya.[2]

Karir Politik

Ia aktif dengan Partai Liberal sejak usia 18 tahun saat mengikuti Gerakan Liberal Muda dan ikut dalam mahasiswa politik di perguruan tinggi. Pada Juli 1962, ia diterima sebagai Jaksa Agung Muda Mahkamah Agung New South Wales. Sebelum pemilihannya ke Parlemen, ia merupakan seorang rekanan di sebuah perusahaan pendanaan di Sydney.[3]

John Howard menjadi orang ke-25 yang memegang jabatan Perdana Menteri sejak terbentuknya Federasi Australia. Ini menyusul kemenangan pemilihan Federal yang menentukan pada 2 Maret 1996. Ia mewakili daerah pemilihan federal Bennelong di pinggiran kota barat laut dan telah terpilih sebagai anggota parlemen Bennelong dalam setiap pemilihan federal sejak 1974.[4]

Ia menjadi perdana menteri dengan pengalaman tinggi yang luas dalam pemerintahan dan oposisi. Ia dipilih sebagai Menteri Urusan Bisnis dan Konsumen pada 1975 pada usia 36 tahun dan kemudian menjabat sebagai Menteri Negosiasi Perdagangan Spesial dan sebagai Bendaharawan Persemakmuran selama lebih dari 5 tahun.[5]

Pada September 1985, ia menjabat Wakil Pemimpin yang dipilih koleganya sebagai Pemimpin Partai Liberal Parlementer dan Pemimpin Oposisi sampai Mei 1989. Ia kembali ke kepemimpinan dengan suara bulat koleganya pada 30 Januari 1995. Pada masa sementara, ia menjabat sebagai juru bicara Koalisi untuk sejumlah jabatan senior.[6]

Terpilih sebagai perdana menteri untuk pertama kalinya pada 1996, ia terpilih kembali pada pemilu 1998, 2001, dan 2004. Ia maju kembali pada pemilu tahun 2007 namun partainya dikalahkan Partai Buruh. Howard sendiri bahkan kalah di daerah pemilihannya, Bennelong.[7] Dari uraian di atas hal yang penting adalah bahwa John Howard seorang sarjana hukum yang salah satunya menduduki jabatan perdana menteri Australia terlama. 

____________________

References:

1. "John Howard", id.wikipedia.org., Diakses pada tanggal 22 Desember 2022, Link: https://id.wikipedia.org/wiki/John_Howard

2. Ibid.

3. Ibid.

4. Ibid.

5. Ibid.

6. Ibid.

7. Ibid.

How to Start a Business in Indonesia?

 

(iStock)

By:

Team of Hukumindo

Previously, the www.hukumindo.com platform has talk about "Sutan Sjahrir, Sosok Perdana Menteri Pertama Indonesia", "Sharia Investment: Definition, Characteristics, Types, and Benefits", "What Are The Competences of The Religious Courts To Adjudicates In Sharia Economic Cases?", "The Role of Law in Sharia Economic Development" you may read also "Does Indonesia Implementing Citizenship By Investment?" and on this occasion we will discuss about 'How to Start a Business in Indonesia?'. At first glance, this article appears to be discussing business matters, but if you pay close attention, it turns out that it also contains the legal rules that apply when you start doing business in Indonesia.

The Indonesian government is facilitating investment with the latest regulations and policies. With reading this article, you can learn how to start a business in Indonesia for foreigners. With the current political and economic climate that is highly supportive of foreign investment, Indonesia has become a lucrative target for many foreign investors. So, the question that often crosses our minds is how to start a business in Indonesia? Through this article, we would like to discuss more about the things that every foreign investor should consider before entering the Indonesian business sector.[1]

Starting a Business in Indonesia: Things to Consider

For you investors, the Indonesian market is very promising. But, before you decide to start your investment in Indonesia, you need to consider the following:[2]

1. Type of business. Please note that there are some sectors or industries that are prohibited or restricted to foreign ownership. This is written in the Negative Investment List. In the list, there are several restrictions on foreign ownership from zero (0) to ninety five (95) percent. This will lead you to a further question: Should you look for a local partner or not. However, there are some businesses that are allowed to be wholly owned (100%) by foreigners.
2. The type of company. Because the Indonesian government wants to protect micro, small and medium entrepreneurs, there is a policy stating that to open a business in Indonesia, a company must be registered as a limited foreign liability or PMA. In order to establish a foreign company, it is mandatory to meet certain requirements regarding minimum investment and the amount of paid-up capital.
3. Human Resources. Even though Indonesia is listed as the fourth most populous country in the world with more than 60% of the total population in their productive age (aged 15-60 years), not all of them have sufficient skills to participate in the industrial and commercial world. This is because the education sector is not spread evenly over large areas. This condition causes companies to face difficulties in finding talent pools, especially in areas outside Java Island. On the other hand, hiring foreigners also requires complicated requirements. This will be a challenge that must be completed for every PMA (limited foreign liability). Several successful FDIs in Indonesia have overcome this problem by providing sufficient training to meet the skills requirements required. Therefore you have to be really selective in selecting human resources based on your needs to avoid extra costs by hiring unskilled or unsuitable people.
4. Diverse Market. Indonesia is not only a country with the largest archipelago in the world, but also has a very complicated market segmentation. Given that there are many races, languages, religions, customs and values, you cannot assume Indonesia is a single market. Each target group has different needs according to the approach taken.
5. Bureaucracy and Law in Indonesia. You have to underline that the bureaucracy in Indonesia is not easy, it can be overwhelming for any foreigner who is new to these regulations. Even though the government has started implementing several online systems and "One-Stop-Service" services to ease the bureaucracy, there are still some fairly complex processes to go through. On the other hand, policies or laws have changed over time. So you need to realize that updating legal knowledge regarding the latest regulations is very important.
6. Uneven Infrastructure Development. Development in Indonesia has long been focused on the Java Island region (6 Provinces: Capital City Jakarta, Banten, West Java, Central Java, Special Region of Jogjakarta, and East Java). All infrastructure and facilities are very focused on this Island. Therefore, doing business in these 6 provinces in the center of the Java archipelago has been a trend for a long time. However, there are also several other large cities on other islands that are being targeted by foreign investors. Of all the things you need to consider, the main thing is to find a place that fits your business so that it has the greatest potential to support your company.
7. Abundant of Natural Resources and Raw Materials. Indonesia has many types of natural resources which are abundant and of various types. If you need natural resources and raw materials to run your business, make sure you know where to get the right natural resources and raw materials. Consider carefully, and know that Indonesia consists of many islands spread over a large area, the distribution of goods can be very expensive if you choose the wrong place. Regardless of the business sector, many foreign companies hope to run a profitable business in a rapidly developing economy.

And if you have any legal issue with this topic, or you may have interst in investing your fund in Indonesia, contact us then, feel free in 24 hour, we will be happy to assist you. 

*) For further information please contact:

Mahmud Kusuma Advocate

Law Office

Jakarta - Indonesia.

E-mail: mahmudkusuma22@gmail.com

________________

References:

1. "Bagaimana Memulai Sebuah Bisnis di Indonesia", www.cekindo.com., Diakses pada tanggal 10 Januari 2023, Link: https://www.cekindo.com/id/blog/bagaimana-untuk-memulai-sebuah-bisnis-di-indonesia

2. Ibid.

Sutan Sjahrir, Sosok Perdana Menteri Pertama Indonesia

(www.70yearsindonesiaaustralia.com)

Oleh:

Tim Hukumindo

Pada kesempatan yang lalu platform www.hukumindo.com telah membahas mengenai "Contoh Surat Somasi Sederhana", "Bagir Manan, Ketua Mahkamah Agung RI Periode 2001-2008", "Mengenal Tony Blair, Mantan Perdana Menteri Inggris Yang Juga Pengacara", "Secuil Kisah Beracara Abraham Lincoln" dan "Mr. Iskak Tjokroadisurjo, Membuka Kantor Hukum Pertama di Batavia", pada kesempatan ini akan dibahas mengenai 'Sosok Sutan Sjahrir, Perdana Menteri Pertama Indonesia'.

Biografi Singkat

Sutan Syahrir (ejaan lama: Soetan Sjahrir, 5 Maret 1909 – 9 April 1966) adalah seorang intelektual, perintis, dan revolusioner kemerdekaan Indonesia. Setelah Indonesia merdeka, ia menjadi politikus dan perdana menteri pertama Indonesia. Ia menjabat sebagai Perdana Menteri Indonesia dari 14 November 1945 hingga 20 Juni 1947. Sjahrir mendirikan Partai Sosialis Indonesia pada tahun 1948. Ia meninggal dalam pengasingan sebagai tawanan politik dan dimakamkan di TMP Kalibata, Jakarta. Sutan Sjahrir ditetapkan sebagai salah seorang Pahlawan Nasional Indonesia pada tanggal 9 April 1966 melalui Keppres nomor 76 tahun 1966.[2]

Sjahrir lahir di Padang Panjang dari pasangan Mohammad Rasad dengan gelar Maharaja Soetan bin Leman dan gelar Soetan Palindih dari Koto Gadang, Agam, Sumatra Barat dan Puti Siti Rabiah yang berasal dari negeri Natal, Mandailing Natal, Sumatra Utara. Ayahnya menjabat sebagai penasehat sultan Deli dan kepala jaksa (landraad) di Medan. Sjahrir bersaudara seayah dengan Rohana Kudus, aktivis serta wartawan wanita yang terkemuka. Sjahrir bersaudara kandung dengan Soetan Sjahsam, seorang makelar saham pribumi paling berpengalaman pada masanya dan Soetan Noeralamsjah, seorang jaksa dan politikus Partai Indonesia Raya (Parindra).[3]

Sarjana Hukum Dan Perdana Menteri Pertama Indonesia

Republik Indonesia dalam sejarahnya juga mempunyai pemimpin yang berlatar belakang pendidikan hukum, dikarenakan sistem pemerintahan pada waktu itu adalah sistem parlementer, maka pemimpin ini menjabat sebagai Perdana Menteri. Waktu itu jabatan Presiden disandang oleh Sukarno, sedangkan Perdana Menteri dijabat oleh Sutan Syahrir. Sosok pejuang kemerdekaan bersama Sukarno dan Hatta ini lahir di Padang Panjang, Sumatera Barat tanggal 5 Maret 1909. Syahrir menjabat sebagai Perdana Menteri dari tanggal 14 November 1945 hingga 20 Juni 1947.[4]

Syahrir kemudian melanjutkan pendidikan tingginya ke negeri Belanda di Fakultas Hukum, Universitas Amsterdam . Di sana, Syahrir mendalami sosialisme. Secara sungguh-sungguh ia berkutat dengan teori-teori sosialisme. Selain menceburkan diri dalam sosialisme, Syahrir juga aktif dalam Perhimpunan Indonesia (PI) yang ketika itu dipimpin oleh Mohammad Hatta  . Di awal tahun 1930, pemerintah Hindia Belanda kian bengis terhadap organisasi pergerakan nasional, dengan aksi razia dan memenjarakan pemimpin pergerakan di tanah air, yang berbuntut pembubaran Partai Nasional Indonesia (PNI) oleh aktivis PNI sendiri. Berita tersebut menimbulkan kekhawatiran di kalangan aktivis PI di Belanda. Mereka selalu menyerukan agar pergerakan tidak mengendur lantaran pemimpinnya dipenjarakan. Seruan itu mereka sampaikan lewat tulisan. Bersama Hatta, keduanya rajin menulis di Daulat Rakjat, majalah milik Pendidikan Nasional Indonesia, dan misi pendidikan rakyat harus menjadi tugas utama pemimpin politik.[5]

Pengujung tahun 1931, Syahrir meninggalkan kampusnya untuk kembali ke tanah air dan terjun dalam pergerakan nasional. Syahrir segera bergabung dalam organisasi Partai Nasional Indonesia (PNI Baru), yang pada Juni 1932 diketuainya. Pengalamannya dalam dunia proletar ia praktekkan di tanah air. Syahrir terjun dalam pergerakan buruh, ia memuat banyak tulisannya tentang perburuhan dalam Daulat Rakyat. Ia juga kerap berbicara perihal pergerakan buruh dalam forum-forum politik. Mei 1933, Syahrir didaulat menjadi Ketua Kongres Kaum Buruh Indonesia.[6]

Pasca kekalahan perang dan menyerahnya Jepang pada perang Pasifik, Syahrir yang terus memantau berita Luar Negeri kemudian juga didukung oleh para pemuda mendesak Soekarno dan Hatta untuk memproklamasikan kemerdekaan pada 15 Agustus 1945 karena Jepang sudah menyerah. Syahrir siap dengan massa gerakan bawah tanah untuk melancarkan aksi perebutan kekuasaan sebagai simbol dukungan rakyat. Soekarno dan Hatta yang belum mengetahui berita menyerahnya Jepang, tidak merespon secara positif. Mereka menunggu keterangan dari pihak Jepang yang ada di Indonesia, dan proklamasi itu mesti sesuai prosedur lewat keputusan Panitia Persiapan Kemerdekaan Indonesia (PPKI) yang dibentuk oleh Jepang. Sesuai rencana PPKI, kemerdekaan akan diproklamasikan pada 24 September 1945.[7]

Sikap Soekarno dan Hatta tersebut mengecewakan para pemuda, sebab sikap itu berisiko kemerdekaan RI dinilai sebagai hadiah Jepang dan RI adalah buatan Jepang. Guna mendesak lebih keras, para pemuda pun menculik Soekarno dan Hatta pada 16 Agustus. Akhirnya, Soekarno dan Hatta memproklamasikan kemerdekaan RI pada 17 Agustus. Karya yang ditulis Syahrir dengan judul “Perjuangan Kita” merupakan karya terbesar Syahrir, demikian menurut Salomon Tas, bersama surat-surat politiknya semasa pembuangan di Boven Digul dan Bandaneira. Manuskrip itu disebut Indonesianis Ben Anderson sebagai, “Satu-satunya usaha untuk menganalisa secara sistematis kekuatan domestik dan internasional yang memperngaruhi Indonesia dan yang memberikan perspektif yang masuk akal bagi gerakan kemerdekaan pada masa depan”. Pemikiran dan usahanya atas Proklamasi Kemerdekaan Republik Indonesia, menjadikannya ditunjuk Soekarno menjadi formatur kabinet parlementer pada bulan November 1945. Pada usia 36 tahun, mulailah Syahrir memperjuangkan kedaulatan Republik Indonesia, sebagai Perdana Menteri termuda di dunia, merangkap Menteri Luar Negeri dan Menteri Dalam Negeri.[8]

Perlakuan tidak menyenangkan sempat dialami oleh Syahrir, yaitu pada tanggal 26 Juni 1946 di Surakarta, Syahrir diculik oleh kelompok oposisi Persatuan Perjuangan yang tidak puas atas diplomasi yang dilakukan oleh pemerintahan Kabinet Sjahrir II dengan Pemerintah Belanda karena sangat merugikan perjuangan Bangsa Indonesia saat itu. Kelompok ini menginginkan pengakuan kedaulatan penuh atau merdeka seratus persen. Sedangkan kabinet yang berkuasa hanya menuntut pengakuan kedaulatan atas Jawa dan Madura. Setelah kejadian penculikan Syahrir hanya bertugas sebagai Menteri Luar Negeri, tugas sebagai Perdana Menteri diambil alih Presiden Soekarno. Namun pada tanggal 2 Oktober 1946, Presiden menunjuk kembali Syahrir sebagai Perdana Menteri agar dapat melanjutkan Perundingan Linggarjati yang akhirnya ditandatangani pada 15 November 1946.[9]

Meski jatuh-bangun akibat berbagai tentangan di kalangan bangsa sendiri, Kabinet Sjahrir I, Kabinet Sjahrir II sampai dengan Kabinet Sjahrir III (1945 hingga 1947) konsisten memperjuangkan kedaulatan RI lewat jalur diplomasi. Syahrir tak ingin konyol menghadapi tentara sekutu yang dari segi persenjataan jelas jauh lebih canggih. Diplomasinya kemudian berbuah kemenangan sementara. Inggris sebagai komando tentara sekutu untuk wilayah Asia Tenggara mendesak Belanda untuk duduk berunding dengan pemerintah republik. Secara politik, hal ini berarti secara de facto sekutu mengakui eksistensi pemerintah RI. Agar Republik Indonesia tak runtuh dan perjuangan rakyat tak menampilkan wajah bengis, Syahrir menjalankan siasatnya. Di pemerintahan, sebagai ketua Badan Pekerja Komite Nasional Indonesia Pusat (BP KNIP), ia menjadi arsitek perubahan Kabinet Presidensil menjadi Kabinet Parlementer yang bertanggung jawab kepada KNIP sebagai lembaga yang punya fungsi legislatif. RI pun menganut sistem multipartai. Tatanan pemerintahan tersebut sesuai dengan arus politik pasca-Perang Dunia II, yakni kemenangan demokrasi atas fasisme. Kepada massa rakyat, Syahrir selalu menyerukan nilai-nilai kemanusiaan dan anti-kekerasan.[10]

Jalan berliku diplomasi diperkeruh dengan gempuran aksi militer Belanda pada 21 Juli 1947. Aksi Belanda tersebut justru mengantarkan Indonesia ke forum Perserikatan Bangsa-Bangsa (PBB). Setelah tidak lagi menjabat Perdana Menteri (Kabinet Sjahrir III), Syahrir diutus menjadi perwakilan Indonesia di PBB. Dengan bantuan Biju Patnaik, Syahrir bersama Agus Salim berangkat ke Lake Success, New York melalui New Delhi dan Kairo untuk menggalang dukungan India dan Mesir. Pada 14 Agustus 1947 Syahrir berpidato di muka sidang Dewan Keamanan PBB. Berhadapan dengan para wakil bangsa-bangsa sedunia, Syahrir mengurai Indonesia sebagai sebuah bangsa yang berabad-abad berperadaban aksara lantas dieksploitasi oleh kaum kolonial. Kemudian, secara piawai Syahrir mematahkan satu per satu argumen yang sudah disampaikan wakil Belanda, Eelco Van Kleffens. Dengan itu, Indonesia berhasil merebut kedudukan sebagai sebuah bangsa yang memperjuangan kedaulatannya di gelanggang internasional. PBB pun turut campur, sehingga Belanda gagal mempertahankan upayanya untuk menjadikan pertikaian Indonesia-Belanda sebagai persoalan yang semata-mata urusan dalam negerinya.[11]

Van Kleffens dianggap gagal membawa kepentingan Belanda dalam sidang Dewan Keamanan PBB. Berbagai kalangan Belanda menilai kegagalan itu sebagai kekalahan seorang diplomat ulung yang berpengalaman di gelanggang internasional dengan seorang diplomat muda dari negeri yang baru saja lahir. Van Kleffens pun ditarik dari posisi sebagai wakil Belanda di PBB menjadi duta besar Belanda di Turki. Syahrir populer di kalangan para wartawan yang meliput sidang Dewan Keamanan PBB, terutama wartawan-wartawan yang berada di Indonesia semasa revolusi. Beberapa surat kabar menamakan Syahrir sebagai The Smiling Diplomat.[12]

Selepas memimpin kabinet, Sutan Syahrir diangkat menjadi penasihat Presiden Soekarno sekaligus Duta Besar Keliling. Pada tahun 1948 Syahrir mendirikan Partai Sosialis Indonesia (PSI) sebagai partai alternatif selain partai lain yang tumbuh dari gerakan komunis internasional. Meskipun PSI berhaluan kiri dan mendasarkan pada ajaran Marx-Engels, namun ia menentang sistem kenegaraan Uni Soviet. Menurutnya pengertian sosialisme adalah menjunjung tinggi derajat kemanusiaan, dengan mengakui dan menjunjung persamaan derajat tiap manusia. Tahun 1955 PSI gagal mengumpulkan suara dalam pemilihan umum pertama di Indonesia. Setelah kasus PRRI tahun 1958, hubungan Sutan Syahrir dan Presiden Soekarno memburuk sampai akhirnya PSI dibubarkan tahun 1960. Tahun 1962 hingga 1965, Syahrir ditangkap dan dipenjarakan tanpa diadili sampai menderita sakit. Setelah itu Syahrir diizinkan untuk berobat ke Zurich Swiss, salah seorang kawan dekat yang pernah menjabat wakil ketua PSI Sugondo Djojopuspito menghantarkan hingga di Bandara Kemayoran dan Syahrir memeluk Sugondo dengan air mata, dan akhirnya meninggal di Swiss pada tanggal 9 April 1966.[13] 

____________________

References:

1. "Sutan Sjahrir", //id.wikipedia.org., Diakses pada tanggal 23 Desember 2022, Link: https://id.wikipedia.org/wiki/Sutan_Sjahrir

2. Ibid.

3. Ibid.

4. "Sosok Pemimpin Negara atau Pemerintahan Berlatar Pendidikan Bidang Hukum", www.yuridis.com., Diakses pada tanggal 23 Desember 2022, Link: http://www.yuridis.com/sosok-pemimpin-negara-atau-pemerintahan-berlatar-pendidikan-bidang-hukum/

5. Ibid.

6. Ibid.

7. Ibid.

8. Ibid.

9. Ibid.

10. Ibid.

11. Ibid.

12. Ibid.

13. Ibid.